Title: THE CHANGING LANDSCAPE OF HEDGE FUND REGULATION: CURRENT CONCERNS AND A PRINCIPLE-BASED APPROACH
Abstract: Rapid growth in the international financial system has created unprecedented opportunity and complexity for investors, as well as challenges for capital markets regulators. The popularity of pooled investment vehicles such as hedge funds, private equity funds, and venture capital funds, has helped to fuel this growth. Industry expansion has in turn necessitated the reexamination of the appropriate capital markets regulatory structure. In particular, hedge fund regulation has been at the forefront of the debate because hedge funds deeply impact market liquidity and the potential for heightened systemic risk, due to the leverage they typically use. While mandatory registration is no longer a likely prospect in the near future, an examination of the current disclosure rules, in tandem with an analysis of the concerns raised by the growth of hedge funds, can build a better understanding of the correct regulatory approach moving forward. This Article will provide an overview of the basics of the hedge fund industry, summarize the securities laws applicable to hedge funds, examine how disclosure requirements interact with the hedge fund industry, review common concerns with hedge funds, and assess the current regulatory approach to hedge funds both in the United States and abroad. Additionally, this paper will evaluate how changes to the current securities rules that affect hedge funds could impact the industry's future.
Publication Year: 2008
Publication Date: 2008-01-01
Language: en
Type: article
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Cited By Count: 1
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